UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] Quarterly report pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the period ended March 31, 1999 or
[ ] Transition report pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the transition period from to
Commission File No. 0-19901
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO L.P.
(Exact name of registrant as specified in its charter)
Delaware 13-3642323
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification
No.)
c/o Demeter Management Corporation
Two World Trade Center, 62 Fl. New York, NY 10048
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (212) 392-5454
_________________________________________________________________
_
(Former name, former address, and former fiscal year, if changed
since last report)
Indicate by check-mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
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<TABLE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO L.P.
INDEX TO QUARTERLY REPORT ON FORM 10-Q
March 31, 1999
<CAPTION>
PART I. FINANCIAL INFORMATION
<S> <C>
Item 1. Financial Statements
Statements of Financial Condition March 31, 1999
(Unaudited) and December 31, 1998.....................2
Statements of Operations for the Quarters Ended
March 31, 1999 and 1998 (Unaudited)...................3
Statements of Changes in Partners' Capital for the
Quarters Ended March 31, 1999 and 1998
(Unaudited)...........................................4
Statements of Cash Flows for the Quarters Ended
March 31, 1999 and 1998 (Unaudited)...................5
Notes to Financial Statements (Unaudited)..........6-10
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations..11-17
Item 3. Quantitative and Qualitative Disclosures about
Market Risk . . . . . . . . . . . . . . . . . .18-29
Part II. OTHER INFORMATION
Item 1 Legal Proceedings.............................. 30
Item 6. Exhibits and Reports on Form 8-K..................30
</TABLE>
<PAGE>
<TABLE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO L.P.
STATEMENTS OF FINANCIAL CONDITION
<CAPTION>
March 31, December 31,
1999 1998
$ $
(Unaudited)
ASSETS
<S> <C> <C>
Equity in futures interests trading accounts:
Cash 17,450,498 17,208,838
Net unrealized gain on open contracts 633,773 1,810,981
Total Trading Equity 18,084,271 19,019,819
Due from DWR 128,548 111,358
Interest receivable (DWR) 56,284 54,454
Total Assets 18,269,103 19,185,631
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Redemptions payable 207,266 138,458
Accrued management fees 45,637 47,934
Accrued administrative expenses 14,111 11,996
Total Liabilities 267,014 198,388
Partners' Capital
Limited Partners (16,907.449 and
17,430.131 Units, respectively) 17,775,045 18,754,867
General Partner (215.962 Units) 227,044 232,376
Total Partners' Capital 18,002,089 18,987,243
Total Liabilities and Partners' Capital 18,269,103 19,185,631
NET ASSET VALUE PER UNIT 1,051.31 1,076.00
<FN>
The accompanying notes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO L.P.
STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
For the Quarters Ended March 31,
1999 1998
$ $
REVENUES
<S> <C> <C>
Trading profit (loss):
Realized 1,094,288 439,886
Net change in unrealized (1,177,208) (262,947)
Total Trading Results (82,920) 176,939
Interest Income (DWR) 158,240 207,655
Total Revenues 75,320 384,594
EXPENSES
Brokerage commissions (DWR) 317,184 341,332
Management fees 139,122 157,044
Transaction fees and costs 39,860 65,966
Administrative expenses 11,565 13,054
Total Expenses 507,731 577,396
NET LOSS (432,411) (192,802)
NET LOSS ALLOCATION
Limited Partners (427,079) (186,306)
General Partner (5,332) (6,496)
NET LOSS PER UNIT
Limited Partners
(24.69) (9.07)
General Partner
(24.69) (9.07)
<FN>
The accompanying notes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO L.P.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
For the Quarters Ended March 31, 1999 and 1998
(Unaudited)
<CAPTION>
Units of
Partnership Limited General
Interest Partners Partner Total
<S> <C> <C> <C>
<C>
Partners' Capital
December 31, 1997 21,679.155 $20,276,293 $692,502
$20,968,795
Net Loss - (186,306) (6,496) (192,802)
Redemptions (549.932) (530,821) -
(530,821)
Partners' Capital
March 31, 1998 21,129.223 $19,559,166 $686,006
$20,245,172
Partners' Capital
December 31, 1998 17,646.093 $18,754,867 $232,376
$18,987,243
Net Loss - (427,079) (5,332) (432,411)
Redemptions (522.682) (552,743) -
(552,743)
Partners' Capital
March 31, 1999 17,123.411 $17,775,045 $227,044
$18,002,089
<FN>
The accompanying notes are an integral part
of these financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO L.P.
STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
For the Quarters Ended March 31,
1999 1998
$ $
CASH FLOWS FROM OPERATING ACTIVITIES
<S> <C> <C>
Net loss (432,411)
(192,802) Noncash
item included in net loss:
Net change in unrealized 1,177,208 262,947
(Increase) decrease in operating assets:
Due from DWR (17,190) (16,208)
Interest receivable (DWR) (1,830) 3,617
Net option premiums - (46,069)
Increase (decrease) in operating liabilities:
Accrued management fees (2,297) (1,646)
Accrued administrative expenses 2,115
13,054
Net cash provided by operating activities 725,595
22,893
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in redemptions payable 68,808 66,871
Redemptions of units (552,743)
(530,821)
Net cash used for financing activities (483,935)
(463,950)
Net increase (decrease) in cash 241,660 (
441,057)
Balance at beginning of period 17,208,838
19,685,194
Balance at end of period 17,450,498
19,244,137
<FN>
The accompanying notes are an integral part
of these financial statements.
</TABLE>
<PAGE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO L.P.
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
The financial statements include, in the opinion of management,
all adjustments necessary for a fair presentation of the results
of operations and financial condition of Dean Witter Global
Perspective Portfolio L.P. (the "Partnership"). The financial
statements and condensed notes herein should be read in
conjunction with the Partnership's December 31, 1998 Annual
Report on Form 10-K.
1. Organization
Dean Witter Global Perspective Portfolio L.P. is a limited
partnership organized to engage in the speculative trading of
futures and forward contracts, options on futures contracts,
physical commodities and other commodity interests (collectively,
"futures interests"). The general partner is Demeter Management
Corporation ("Demeter"). The non-clearing commodity broker is
Dean Witter Reynolds Inc. ("DWR") and an unaffiliated clearing
commodity broker, Carr Futures Inc. ("Carr"), provides clearing
and execution services. Both Demeter and DWR are wholly-owned
subsidiaries of Morgan Stanley Dean Witter & Co. ("MSDW"). The
trading advisors for the Partnership are ELM Financial, Inc., EMC
Capital Management, Inc. and Millburn Ridgefield Corporation (the
"Trading Advisors").
<PAGE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
2. Related Party Transactions
The Partnership's cash is on deposit with DWR and Carr in futures
interests trading accounts to meet margin requirements as needed.
DWR pays interest on these funds based on current 13-week U.S.
Treasury bill rates. The Partnership pays brokerage commissions
to DWR.
3. Financial Instruments
The Partnership trades futures and forward contracts, options on
futures contracts, physical commodities and other commodity
interests. Futures and forwards represent contracts for delayed
delivery of an instrument at a specified date and price. Risk
arises from changes in the value of these contracts and the
potential inability of counterparties to perform under the terms
of the contracts. There are numerous factors which may
significantly influence the market value of these contracts,
including interest rate volatility.
In June 1998, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standard ("SFAS") No. 133,
"Accounting for Derivative Instruments and Hedging Activities"
<PAGE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
effective for fiscal years beginning after June 15, 1999. The
Partnership has elected to adopt the provisions of SFAS No. 133
beginning with the fiscal year ended December 31, 1998. SFAS No.
133 supersedes SFAS No. 119 and No. 105, which required the
disclosure of average aggregate fair values and contract/notional
values, respectively, of derivative financial instruments for an
entity which carries its assets at fair value. The application
of SFAS No. 133 does not have a significant effect on the
Partnership's financial statements.
The net unrealized gain on open contracts is reported as a
component of "Equity in futures interests trading accounts" on
the Statements of Financial Condition and totaled $633,773 and
$1,810,981 at March 31, 1999 and December 31, 1998, respectively.
Of the $633,773 net unrealized gain on open contracts at March
31, 1999, $819,251 related to exchange-traded futures contracts
and $(185,478) related to off-exchange-traded forward currency
contracts.
Of the $1,810,981 net unrealized gain on open contracts at
December 31, 1998, $2,079,747 related to exchange-traded futures
contracts and $(268,766) related to off-exchange-traded forward
currency contracts.
<PAGE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Exchange-traded futures contracts held by the Partnership at
March 31, 1999 and December 31, 1998 mature through December 1999
and September 1999, respectively. Off-exchange-traded forward
currency contracts held by the Partnership at March 31, 1999 and
December 31, 1998 mature through June 1999 and March 1999,
respectively.
The Partnership is subject to the credit risk associated with
counterparty non-performance. The credit risk associated with
the instruments in which the Partnership is involved is limited
to the amounts reflected in the Partnership's Statements of
Financial Condition. DWR and Carr act as the futures commission
merchants or the counterparties with respect to most of the
Partnership's assets. Exchange-traded futures and future-styled
options contracts are marked to market on a daily basis, with
variations in value settled on a daily basis. Each of DWR and
Carr, as a futures commission merchant for all of the
Partnership's exchange-traded futures and futures-styled options
contracts, are required, pursuant to regulations of the Commodity
Futures Trading Commission ("CFTC") to segregate from their own
assets, and for the sole benefit of their commodity customers,
all funds held by them with respect to exchange-traded futures
and futures-styled options contracts, including an amount equal
to the net unrealized gain on all open futures and futures-styled
options contracts, which funds, in the aggregate, totaled
$18,269,749 and $19,288,585 at March 31, 1999 and December 31,
1998, respectively.
<PAGE>
DEAN WITTER GLOBAL PERSPECTIVE PORTFOLIO L.P.
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
With respect to the Partnership's off-exchange-traded forward
currency contracts, there are no daily settlements of variations
in value nor is there any requirement that an amount equal to the
net unrealized gain on open forward contracts be segregated.
With respect to those off-exchange-traded forward currency
contracts, the Partnership is at risk to the ability of Carr, the
sole counterparty on all of such contracts, to perform. Carr's
parent, Credit Agricole Indosuez, has guaranteed to the
Partnership payment of the net liquidating value of the
transactions in the Partnership's account with Carr (including
foreign currency contracts).
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Liquidity - Assets of the Partnership are deposited with DWR as
non-clearing broker and Carr as clearing broker in separate
futures interest trading accounts. Such assets are held in either
non-interest bearing bank accounts or in securities approved by
the CFTC for investment of customer funds. The Partnership's
assets held by DWR and Carr may be used as margin solely for the
Partnership's trading. Since the Partnership's sole purpose is
to trade in futures interests, it is expected that the
Partnership will continue to own such liquid assets for margin
purposes.
The Partnership's investment in futures interests may, from
time to time, be illiquid. Most United States futures exchanges
limit fluctuations in certain futures interest prices during a
single day by regulations referred to as "daily price
fluctuations limits" or "daily limits". Pursuant to such
regulations, during a single trading day no trades may be
executed at prices beyond the daily limit. If the price for a
particular futures interest has increased or decreased by an
amount equal to the daily limit, positions in such futures
interest can neither be taken nor liquidated unless traders are
willing to effect trades at or within the limit. Futures
interests prices have occasionally moved the daily limit for
several consecutive days with little or no trading. Such market
conditions could prevent the Partnership from promptly
liquidating its futures interests and result in restrictions on
redemptions.
<PAGE>
There is no limitation on daily price moves in trading
forward contracts on foreign currency. The markets for some
world currencies have low trading volume and are illiquid, which
may prevent the Partnership from trading in potentially
profitable markets or from promptly liquidating unfavorable
positions, subjecting it to substantial losses. Either of these
market conditions could result in restrictions on redemptions.
Capital Resources. The Partnership does not have, nor does it
expect to have, any capital assets. Future redemptions of Units
of Limited Partnership Interest ("Units") will affect the amount
of funds available for investment in futures interests in
subsequent periods. Since they are at the discretion of Limited
Partners, it is not possible to estimate the amount and
therefore, the impact of future redemptions of Units.
Results of Operations
For the Quarter Ended March 31, 1999
For the quarter ended March 31, 1999, the Partnership recorded
total trading revenues including interest income of $75,320 and,
after expenses, posted a decrease in Net Asset Value per Unit.
The Partnership recorded net losses primarily from trading S&P
500 Index futures during January and February as domestic equity
prices moved in a choppy pattern on concerns that strong economic
growth in the U.S. would lead to an interest rate hike by the
Federal Reserve. Losses were also recorded in this market
complex from long IBEX-35 Index futures positions as Spanish
stock prices
<PAGE>
also moved in a trendless manner during January and March in
response to the uncertainty caused by the Brazilian economic
crisis. In the global interest rate futures markets, losses were
experienced during January and February from short positions in
Japanese government bond futures as interest rate prices in Japan
spiked higher amid sizable losses in global stock markets in
early January, a "flight-to-quality" due to renewed financial-
market turmoil in Brazil and an announcement by the Japanese
Ministry of Finance that they would resume outright purchases of
government bonds. In soft commodities, losses were recorded from
long positions in coffee and sugar futures during January as
prices declined amid fears that economic turmoil in Brazil would
lead them to flood the market with increased exports. Losses
were also recorded during March from long coffee futures
positions as prices surged late in the month as options-related
buying triggered waves of buy-stops at several key resistance
levels, attracting fund short-covering. In the metals markets,
losses were recorded from long copper futures positions during
February as copper prices fell to a 12-year low amid a continued
rise in supplies and declining demand amid a worldwide economic
slowdown, particularly in Asia. Losses were also experienced
from short positions in copper futures during March as prices
reversed higher in response to a decline in LME warehouse stocks
and evidence that Japanese consumption has stabilized. A portion
of the Partnership's overall losses for the quarter was offset by
gains recorded in the currency markets from short positions in
the European common currency and the Swiss franc as the value of
these European
<PAGE>
currencies declined versus the U.S. dollar during February and
March. Some of the fundamental reasons that led to the decline
in the value of the euro and Swiss franc were the strength of the
U.S. economy, concerns pertaining to the economic health of
Europe and Japan and growing uncertainty about the military
action in Yugoslavia. Additional gains were recorded in the
energy markets during March from long futures positions in crude
oil and its refined products, heating oil and unleaded gasoline,
as oil prices moved considerably higher. The substantial
recovery in oil prices during March was largely attributed to the
news that both OPEC and non-OPEC countries had reached an
agreement to cut total output by approximately two million
barrels a day beginning April 1st. Smaller gains were recorded
in the agricultural markets during January and February from
short positions in soybean and soybean oil futures as prices in
these markets moved lower due to beneficial growing weather in
South America and speculation that Brazil would increase exports
to aid its ailing economy. Total expenses for the three months
ended March 31, 1999 were $507,731, resulting in a net loss of
$432,411. The value of a Unit decreased from $1,076.00 at
December 31, 1998 to $1,051.31 at March 31, 1999.
For the Quarter Ended March 31, 1998
For the quarter ended March 31, 1998, the Partnership recorded
total trading revenues including interest income of $384,594 and,
after expenses posted a decrease in Net Asset Value per Unit.
The most significant losses were recorded in the currency markets
during January due primarily to a reversal lower in the previous
<PAGE>
upward trend in the value of the U.S. dollar relative to the
German mark, Japanese yen and the Australian dollar. Additional
currency losses were recorded during February as the stability of
the Japanese economy remained questionable, thus causing the
value of the yen to move in a short-term volatile pattern. A
portion of these losses was offset by gains in March from short
positions in the Japanese yen, Swiss franc and German mark
relative to the U.S. dollar and other world currencies. In the
metals markets, losses were recorded from short copper futures
positions as prices moved higher during January and March, and
from long silver futures positions as silver prices reversed
lower during February after trending higher previously. Smaller
losses were recorded in the energy and soft commodities market
from short positions in crude oil and cotton futures as prices in
these markets moved higher after trending lower previously. A
portion of the Partnership's overall losses was offset by gains
in financial futures from long positions in European bond and
U.S. stock index futures during January and March, respectively.
Total expenses for the three months ended March 31, 1998 were
$577,396, resulting in a net loss of $192,802. The value of a
Unit decreased from $967.23 at December 31, 1997 to $958.16 at
March 31, 1998.
Year 2000 Problem. Commodity pools, like financial and business
organizations and individuals around the world, depend on the
smooth functioning of computer systems. Many computer systems in
use today cannot recognize the computer code for the year 2000,
<PAGE>
but revert to 1900 or some other date. This is commonly known as
the "Year 2000 Problem". The Partnership could be adversely
affected if computer systems used by it or any third party with
whom it has a material relationship do not properly process and
calculate date-related information and data concerning dates on
or after January 1, 2000. Such a failure could adversely affect
the handling or determination of futures trades and prices and
other services.
MSDW began its planning for the Year 2000 Problem in 1995,
and currently has several hundred employees working on the
matter. It has developed its own Year 2000 compliance plan to
deal with the problem and had the plan approved by the company's
executive management, Board of Directors and Information
Technology Department. Demeter is coordinating with MSDW to
address the Year 2000 Problem with respect to Demeter's computer
systems that affect the Partnership. This includes hardware and
software upgrades, systems consulting and computer maintenance.
Beyond the challenge facing internal computer systems, the
systems failure of any of the third parties with whom the
Partnership has a material relationship - the futures exchanges
and clearing organizations through which it trades, Carr, or the
Trading Advisors - could result in a material financial risk to
the Partnership. All U.S. futures exchanges are subject to
monitoring by the CFTC of their Year 2000 preparedness and the
major foreign futures exchanges are also expected to be subject
to market-wide testing of their Year 2000 compliance during 1999.
<PAGE>
Demeter intends to monitor the progress of Carr and the Trading
Advisors throughout 1999 in their Year 2000 compliance and, where
applicable, to test its external interface with Carr and the
Trading Advisors.
A worst case scenario would be one in which trading of
contracts on behalf of the Partnership becomes impossible as a
result of the Year 2000 problem encountered by any third parties.
A less catastrophic but more likely scenario would be one in
which trading opportunities diminish as a result of technical
problems resulting in illiquidity and fewer opportunities to make
profitable trades. MSDW has begun developing various "contingency
plans" in the event that the systems of such third parties fail.
Demeter intends to consult closely with MSDW in implementing
those plans. Despite the best efforts of both Demeter and MSDW,
however, it is possible that these steps will not be sufficient
to avoid any adverse impact to the Partnership.
Risks Associated With the Euro. On January 1, 1999, eleven
countries in the European Union established fixed conversion
rates on their existing sovereign currencies and converted to a
common single currency (the "euro"). During a three-year
transition period, the sovereign currencies will continue to
exist but only as a fixed denomination of the euro. Conversion
to the euro prevents the Trading Advisors from trading in certain
currencies and thereby limits their ability to take advantage of
potential market opportunities that might otherwise have existed
had separate currencies been available to trade. This could
adversely affect the performance results of the Partnership.
<PAGE>
Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK
Introduction
The Partnership is a commodity pool engaged primarily in the
speculative trading of futures interests. The market sensitive
instruments held by the Partnership are acquired solely for
speculative trading purposes and, as a result, all or
substantially all of the Partnership's assets are subject to the
risk of trading loss. Unlike an operating company, the risk of
market sensitive instruments is integral, not incidental, to the
Partnership's primary business activities.
The futures interests traded by the Partnership involve varying
degrees of related market risk. Such market risk is often
dependent upon changes in the level or volatility of interest
rates, exchange rates, and/or market values of financial
instruments and commodities. Fluctuations in related market risk
based upon the aforementioned factors result in frequent changes
in the fair value of the Partnership's open positions, and,
consequently, in its earnings and cash flow.
The Partnership's total market risk is influenced by a wide
variety of factors, including the diversification effects among
the Partnership's existing open positions, the volatility present
within the market(s), and the liquidity of the market(s). At
varying times, each of these factors may act to exacerbate or
mute the market risk associated with the Partnership.
<PAGE>
The Partnership's past performance is not necessarily indicative
of its future results. Any attempt at quantifying the
Partnership's market risk must be qualified by the inherent
uncertainty of its speculative trading, which may cause future
losses and volatility (i.e. "risk of ruin") far in excess of the
Partnership's experience to date and/or any reasonable
expectation premised upon historical changes in the fair value of
its market sensitive instruments.
Quantifying the Partnership's Trading Value at Risk
The following quantitative disclosures regarding the
Partnership's market risk exposures contain "forward-looking
statements" within the meaning of the safe harbor from civil
liability provided for such statements by the Private Securities
Litigation Reform Act of 1995 (set forth in Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934). All quantitative disclosures in this section are
deemed to be forward-looking statements for purposes of the safe
harbor, except for statements of historical fact.
The Partnership accounts for open positions on the basis of mark-
to-market accounting principles. As such, any loss in the fair
value of the Partnership's open positions is directly reflected
in
the Partnership's earnings, whether realized or unrealized, and
the Partnership's cash flow, as profits and losses on open
positions of exchange-traded futures interests are settled daily
through variation margin.
<PAGE>
The Partnership's risk exposure in the various market sectors
traded by the Trading Advisors is estimated below in terms of
Value at Risk ("VaR"). The VaR model employed by the Partnership
incorporates numerous variables that could impact the fair value
of the Partnership's trading portfolio. The Partnership
estimates VaR using a model based on historical simulation with a
confidence level of 99%. Historical simulation involves
constructing a distribution of hypothetical daily changes in
trading portfolio value. The VaR model generally takes into
account linear exposures to price and interest rate risk. Market
risks that are incorporated in the VaR model include equity and
commodity prices, interest rates, foreign exchange rates, as well
as correlation that exists among these variables. The
hypothetical changes in portfolio value are based on daily
observed percentage changes in key market indices or other market
factors ("market risk factors") to which the portfolio is
sensitive. In the case of the Partnership's VaR, the historical
observation period is approximately four years. The
Partnership's one-day 99% VaR corresponds to the negative change
in portfolio value that, based on observed market risk factor
moves, would have been exceeded once in 100 trading days.
VaR models such as the Partnership's are continually evolving as
trading portfolios become more diverse and modeling techniques
and systems capabilities improve. It must also be noted that the
VaR model is used to quantify market risk for historic reporting
<PAGE>
purposes only and is not utilized by either Demeter or the
Trading Advisors in their daily risk management activities.
The Partnership's Value at Risk in Different Market Sectors
The following table indicates the VaR associated with the
Partnership's open positions as a percentage of total net assets
by market category as of March 31, 1999. As of March 31, 1999,
the Partnership's total capitalization was approximately $18
million.
Primary Market March 31, 1999
Risk Category Value at Risk
Interest Rate (0.91)%
Currency (1.84)
Equity (0.89)
Commodity (0.78)
Aggregate Value at Risk (2.27)%
Aggregate value at risk represents the aggregate VaR of the
Partnership's open positions and not the sum of the VaR of the
individual categories listed above. Aggregate VaR will be lower
as it takes into account correlation among different positions
and categories.
The table above represents the VaR of the Partnership's open
positions at March 31, 1999 only and is not necessarily
representative of either the historic or future risk of an
investment in the Partnership. As the Partnership's sole
business is the speculative trading of primarily futures
interests, the composition of its portfolio of open positions can
<PAGE>
change significantly over any given time period or even within a
single trading day. Such changes in open positions could
materially impact market risk as measured by VaR either
positively or negatively.
The table below supplements the quarter-end VaR by presenting the
Partnership's high, low and average VaR as a percentage of total
net assets for the four quarterly reporting periods from April 1,
1998 through March 31, 1999.
Primary Market Risk Category High Low Average
Interest Rate (2.32)% (0.91)% (1.74)%
Currency (1.84) (0.95) (1.35)
Equity (0.89) (0.34) (0.60)
Commodity (1.07) (0.60) (0.85)
Aggregate Value at Risk (3.00)% (2.15)% (2.44)%
Limitations on Value at Risk as an Assessment of Market Risk
The face value of the market sector instruments held by the
Partnership is typically many times the applicable margin
requirements, as such margin requirements generally range between
2% and 15% of contract face value. Additionally, due to the use
of leverage, the face value of the market sector instruments held
by the Partnership is typically many times the total
capitalization of the Partnership. The financial magnitude of
the Partnership's open positions thus creates a "risk of ruin"
not typically found in other investment vehicles. Due to the
relative size of the positions held, certain market conditions
<PAGE>
may cause the Partnership to incur losses greatly in excess of
VaR within a short period of time. The foregoing VaR tables, as
well as the past performance of the Partnership, gives no
indication of such "risk of ruin". In addition, VaR risk measures
should be interpreted in light of the methodology's limitations,
which include the following: past changes in market risk factors
will not always yield accurate predictions of the distributions
and correlations of future market movements; changes in portfolio
value in response to market movements may differ from the
responses implicit in a VaR model; published VaR results reflect
past trading positions while future risk depends on future
positions; VaR using a one-day time horizon does not fully
capture the market risk of positions that cannot be liquidated or
hedged within one day; and the historical market risk factor data
used for VaR estimation may provide only limited insight into
losses that could be incurred under certain unusual market
movements.
The foregoing VaR tables present the results of the Partnership's
VaR for each of the Partnership's market risk exposures and on an
aggregate basis at March 31, 1999 and for the end of the four
quarterly reporting periods from April 1, 1998 through March 31,
1999. Since VaR is based on historical data, VaR should not be
viewed as predictive of the Partnership's future financial
performance or its ability to manage and monitor risk and there
can be no assurance that the Partnership's actual losses on a
particular day will not exceed the VaR amounts indicated or that
such losses will not occur more than 1 in 100 trading days.
<PAGE>
Non-Trading Risk
The Partnership has non-trading market risk on its foreign cash
balances not needed for margin. However, such balances, as well
as any market risk they may represent, are immaterial. The
Partnership also maintains a substantial portion (approximately
85%) of its available assets in cash at DWR. A decline in short-
term interest rates will result in a decline in the Partnership's
cash management income. This cash flow risk is not considered
material.
Materiality, as used throughout this section, is based on an
assessment of reasonably possible market movements and the
potential losses caused by such movements, taking into account
the leverage, optionality and multiplier features of the
Partnership's market sensitive instruments.
Qualitative Disclosures Regarding Primary Trading Risk Exposures
The following qualitative disclosures regarding the Partnership's
market risk exposures - except for (i) those disclosures that are
statements of historical fact and (ii) the descriptions of how
the Partnership manages its primary market risk exposures -
constitute forward-looking statements within the meaning of
Section 27A of the Securities Act and Section 21E of the
Securities Exchange Act. The Partnership's primary market risk
exposures as well as the strategies used and to be used by
Demeter and the Trading Advisors for managing such exposures are
subject to numerous uncertainties, contingencies and risks, any
<PAGE>
one of which could cause the actual results of the Partnership's
risk controls to differ materially from the objectives of such
strategies. Government interventions, defaults and expro-
priations, illiquid markets, the emergence of dominant
fundamental factors, political upheavals, changes in historical
price relationships, an influx of new market participants,
increased regulation and many other factors could result in
material losses as well as in material changes to the risk
exposures and the risk management strategies of the Partnership.
Investors must be prepared to lose all or substantially all of
their investment in the Partnership.
The following were the primary trading risk exposures of the
Partnership as of March 31, 1999, by market sector. It may be
anticipated however, that these market exposures will vary
materially over time.
Interest Rate. Interest rate risk is the principal market
exposure of the Partnership. Interest rate movements directly
affect the price of the sovereign bond futures positions held by
the Partnership and indirectly the value of its stock index and
currency positions. Interest rate movements in one country as
well as relative interest rate movements between countries
materially impact the Partnership's profitability. The
Partnership's primary interest rate exposure is to interest rate
fluctuations in the United States and the other G-7 countries.
However, the Partnership also takes futures positions in the
government debt of smaller nations - e.g. Australia, Switzerland
<PAGE>
and Spain. Demeter anticipates that G-7 interest rates will
remain the primary market exposure of the Partnership for the
foreseeable future. The changes in interest rates which have the
most effect on the Partnership are changes in long-term, as
opposed to short-term, rates. Most of the speculative future
positions held by the Partnership are in medium-to-long term
instruments. Consequently, even a material change in short-term
rates would have little effect on the Partnership were the medium-
to-long term rates to remain steady.
Currency. The Partnership's currency exposure is to
exchange rate fluctuations, primarily fluctuations which disrupt
the historical pricing relationships between different currencies
and currency pairs. These fluctuations are influenced by
interest rate changes as well as political and general economic
conditions. The Partnership trades in a large number of
currencies, including cross-rates - i.e., positions between two
currencies other than the U.S. dollar. However, the
Partnership's major exposures have typically been in the
dollar/euro, dollar/yen, dollar/Swiss franc and dollar/pound
positions. Demeter does not anticipate that the risk profile of
the Partnership's currency sector will change significantly in
the future, although it is difficult at this point to predict the
effect of the introduction of the euro on the Trading Advisors'
currency trading strategies.
Equity. The Partnership's primary equity exposure is to
equity price risk in the G-7 countries. The stock index futures
<PAGE>
traded by the Partnership are by law limited to futures on
broadly based indices. As of March 31, 1999, the Partnership's
primary exposures were in the Nikkei (Japan), S&P 500 and
Financial Times (England) stock indices. The Partnership is
primarily exposed to the risk of adverse price trends or static
markets in the major U.S., European and Japanese indices.
(Static markets would not cause major market changes but would
make it difficult for the Partnership to avoid being "whipsawed"
into numerous small losses).
Commodity.
Metals. The Partnership's primary metals market exposure
is to fluctuations in the price of gold and silver. Although
the Trading Advisors will from time to time trade base metals
such as aluminum, zinc, copper and nickel, the principal market
exposures of the Partnership have consistently been in the
precious metals, gold and silver (and, to a much lesser extent,
platinum). The Trading Advisors' gold trading has been
increasingly limited due to the long-lasting and mainly non-
volatile decline in the price of gold over the last 10-15 years.
However, silver prices have remained volatile over this period,
and the Trading Advisors have, from time to time, taken
substantial positions as they have perceived market opportunities
to develop. Demeter anticipates that gold and silver will remain
the primary metals market exposure for the Partnership.
Soft Commodities and Agriculturals. The Partnership's
primary commodities exposure is to fluctuations in the price of
soft commodities and agriculturals, which are often directly
<PAGE>
affected by severe or unexpected weather conditions. Corn,
soybeans, and coffee accounted for the substantial bulk of the
Partnership's commodities exposure at March 31, 1999. Demeter
anticipates that the Trading Advisors will maintain an emphasis
on corn, soybeans, and coffee, in which the Partnership has
historically taken it's largest positions.
Energy. The Partnership's primary energy market exposure
is to gas and oil price movements, often resulting from political
developments in the Middle East. Although the Trading Advisors
trade natural gas to a limited extent, oil is by far the dominant
energy market exposure of the Partnership. Oil prices are
currently depressed, but they can be volatile and substantial
profits and losses have been and are expected to continue to be
experienced in this market.
Qualitative Disclosures Regarding Non-Trading Risk Exposure
The following was the only non-trading risk exposures of the
Partnership at March 31, 1999:
Foreign Currency Balances. The Partnership's primary foreign
currency balances are in Euros, Swiss francs, Japanese yen,
Mexican pesos and Canadian dollars. The Partnership controls the
non-trading risk of these balances by regularly converting these
balances back into U.S. dollars at varying intervals, depending
upon such factors as size, volatility, etc.
<PAGE>
Qualitative Disclosures Regarding Means of Managing Risk Exposure
The means by which the Partnership and the Trading Advisors,
severally, attempt to manage the risk of the Partnership's open
positions are essentially the same in all market categories
traded. Demeter attempts to manage the Partnership's market
exposure by (i) diversifying the Partnership's assets among
different Trading Advisors each of whose strategies focus on
different market sectors and trading approaches, and (ii),
monitoring the performance of the Trading Advisors on a daily
basis. In addition, the Trading Advisors establish diversi-
fication guidelines, often set in terms of the maximum margin to
be committed to positions in any one market sector or market
sensitive instrument. One should be aware that certain Trading
Advisors treat their risk control policies as strict rules,
whereas others treat such policies as general guidelines.
Demeter monitors and controls the risk of the Partnership's non-
trading instruments, cash, which is the only Partnership
investment directed by Demeter, rather than the Trading Advisors.
<PAGE>
PART II. OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS
The following supplements Legal Proceedings previously disclosed
in Item 3. of the Partnership's 1998 Form 10-K:
On April 12, 1999, the defendants filed a motion in the
California action to oppose certification by the court of the
class in the California litigation.
Item 6. Exhibits and Reports on Form 8-K
(A) Exhibits - None.
(B) Reports on Form 8-K. - None.
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
Dean Witter Global Perspective
Portfolio L.P. (Registrant)
By: Demeter Management Corporation
(General Partner)
May 14, 1999 By: /s/ Lewis A. Raibley, III
Lewis A. Raibley, III
Director and Chief Financial
Officer
The General Partner which signed the above is the only party
authorized to act for the Registrant. The Registrant has no
principal executive officer, principal financial officer,
controller, or principal accounting officer and has no Board of
Directors.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
The schedule contains summary financial information extracted from Dean
Witter Global Perspective Portfolio L.P. and is qualified in its entirety
by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> MAR-31-1999
<CASH> 17,450,498
<SECURITIES> 0
<RECEIVABLES> 184,832<F1>
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 18,269,103<F2>
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 18,269,103<F3>
<SALES> 0
<TOTAL-REVENUES> 75,320<F4>
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 507,731
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (432,411)
<INCOME-TAX> 0
<INCOME-CONTINUING> (432,411)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (432,411)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1>Receivables include due from DWR of $128,548 and interest
receivable of $56,284.
<F2>In addition to cash and receivables, total assets include net
unrealized gain on open contracts of $633,773.
<F3>Liabilities include redemptions payable of $207,266, accrued
management fees of $45,637 and accrued administrative expenses of $14,111.
<F4>Total revenue includes realized trading revenue of $1,094,288, net
change in unrealized of $(1,177,208) and interest income of $158,240.
</FN>
</TABLE>
